diff --git a/src/libs/actions/IOU/SendInvoice.ts b/src/libs/actions/IOU/SendInvoice.ts
index dc3f9d285fef..7f4f9c34fc9f 100644
--- a/src/libs/actions/IOU/SendInvoice.ts
+++ b/src/libs/actions/IOU/SendInvoice.ts
@@ -57,6 +57,7 @@ type SendInvoiceOptions = {
     currentUserAccountID: number;
     policyRecentlyUsedCurrencies: string[];
     invoiceChatReport?: OnyxEntry<OnyxTypes.Report>;
+    invoiceChatReportID?: string;
     receiptFile?: Receipt;
     policy?: OnyxEntry<OnyxTypes.Policy>;
     policyTagList?: OnyxEntry<OnyxTypes.PolicyTagLists>;
@@ -522,6 +523,7 @@ function getSendInvoiceInformation({
     currentUserAccountID,
     policyRecentlyUsedCurrencies,
     invoiceChatReport,
+    invoiceChatReportID,
     receiptFile,
     policy,
     policyTagList,
@@ -548,6 +550,7 @@ function getSendInvoiceInformation({
     if (!chatReport) {
         isNewChatReport = true;
         chatReport = buildOptimisticChatReport({
+            optimisticReportID: invoiceChatReportID,
             participantList: [receiverAccountID, currentUserAccountID],
             chatType: CONST.REPORT.CHAT_TYPE.INVOICE,
             policyID: senderWorkspaceID,
@@ -671,6 +674,7 @@ function sendInvoice({
     policy,
     policyTagList,
     policyCategories,
+    invoiceChatReportID,
     companyName,
     companyWebsite,
     policyRecentlyUsedCategories,
@@ -698,6 +702,7 @@ function sendInvoice({
         transaction,
         currentUserAccountID,
         policyRecentlyUsedCurrencies,
+        invoiceChatReportID,
         invoiceChatReport,
         receiptFile,
         policy,
diff --git a/src/pages/iou/request/step/IOURequestStepConfirmation.tsx b/src/pages/iou/request/step/IOURequestStepConfirmation.tsx
index e9ca980e28df..00746dbe3b58 100644
--- a/src/pages/iou/request/step/IOURequestStepConfirmation.tsx
+++ b/src/pages/iou/request/step/IOURequestStepConfirmation.tsx
@@ -995,12 +995,14 @@ function IOURequestStepConfirmation({
             if (iouType === CONST.IOU.TYPE.INVOICE) {
                 const invoiceChatReport =
                     !isEmptyObject(report) && report?.reportID && doesReportReceiverMatchParticipant(report, receiverParticipantAccountID) ? report : existingInvoiceReport;
+                const invoiceChatReportID = invoiceChatReport ? undefined : reportID;
 
                 sendInvoice({
                     currentUserAccountID: currentUserPersonalDetails.accountID,
                     transaction,
                     policyRecentlyUsedCurrencies: policyRecentlyUsedCurrencies ?? [],
                     invoiceChatReport,
+                    invoiceChatReportID,
                     receiptFile: currentTransactionReceiptFile,
                     policy,
                     policyTagList: policyTags,
@@ -1124,6 +1126,7 @@ function IOURequestStepConfirmation({
             userLocation,
             submitPerDiemExpense,
             policyRecentlyUsedCurrencies,
+            reportID,
         ],
     );
 
diff --git a/src/pages/iou/request/step/IOURequestStepParticipants.tsx b/src/pages/iou/request/step/IOURequestStepParticipants.tsx
index 60a15a275e8f..799448e84d38 100644
--- a/src/pages/iou/request/step/IOURequestStepParticipants.tsx
+++ b/src/pages/iou/request/step/IOURequestStepParticipants.tsx
@@ -241,7 +241,7 @@ function IOURequestStepParticipants({
             const firstParticipantReportID = val.at(0)?.reportID;
             const isPolicyExpenseChat = !!firstParticipant?.isPolicyExpenseChat;
             const policy = isPolicyExpenseChat && firstParticipant?.policyID ? allPolicies?.[`${ONYXKEYS.COLLECTION.POLICY}${firstParticipant.policyID}`] : undefined;
-            const isInvoice = iouType === CONST.IOU.TYPE.INVOICE && isInvoiceRoomWithID(firstParticipantReportID);
+            const isInvoice = iouType === CONST.IOU.TYPE.INVOICE && firstParticipant?.iouType === CONST.IOU.TYPE.INVOICE;
             numberOfParticipants.current = val.length;
 
             // Use transactions array if available, otherwise use initialTransactionID directly
@@ -285,7 +285,7 @@ function IOURequestStepParticipants({
             // When a participant is selected, the reportID needs to be saved because that's the reportID that will be used in the confirmation step.
             // We use || to be sure that if the first participant doesn't have a reportID, we generate a new one.
             // eslint-disable-next-line @typescript-eslint/prefer-nullish-coalescing
-            selectedReportID.current = firstParticipantReportID || generateReportID();
+            selectedReportID.current = firstParticipantReportID && isInvoiceRoomWithID(firstParticipantReportID) ? firstParticipantReportID : generateReportID();
 
             // IOUs are always reported. non-CREATE actions require a report
             if (!isPolicyExpenseChat || action !== CONST.IOU.ACTION.CREATE) {